Kenya is exploring the use of central bank digital currency (CBDC) to settle cross-border payments according to the country’s Central Bank Governor Dr Patrick Njoroge.
A Central bank digital currency (CBDC) is money that exists solely in electronic form, issued and regulated by the nation’s monetary authority and backed by the government.
Speaking on the sidelines of the Afro-Asia Fintech festival which was held virtually, Njoroge said that (CBDCs) can slash the time needed for cross border payments in addition to cutting costs significantly. Njoroge confirmed the bank has plans for a central bank digital currency (CBDC) arguing that CBDCs can enhance the efficiency of cross-border payments, as long as countries work together.
“We see the benefits would be more cross border…” said CBK Governor adding that, “The issue is not to be first, the issue is to do it right”
Dr Njoroge further confirmed that Central Bank of Kenya (CBK) is in discussions with other global Central Banks on the possibilities of introducing the CBDCs.
Nigeria’s Central Bank Digital Currency
With the launch of the eNairaon October 25, Nigeria became one of the first countries in the world and the first in Africa to launch its own Central Bank Digital Currency (CBDC). According to media reports, the eNaira saw over 400,000 new wallets registered with 12,500 transactions worth $113,000 in less than two weeks of launch.